OFFERING MEMORANDUM WINN DIXIE PRAIRIEVILLE, LOUISIANA APPROX. 17 MILES FROM BATON ROUGE, LA IN ASSOCIATION WITH: NET LEASE GROUP ANDREW BOGARDUS BARRY COHN JONATHAN FAWER +1 415 677 0421 +1 510 267 6003 Corporate Realty [email protected] [email protected] Louisiana licensed agent CA LIC #00913825 CA LIC ##01007603 SUBJECT PROPERTY The information contained in the Materials has been obtained by Agent from Confidentiality & Disclaimer sources believed to be reliable; however, no representation or warranty is made The information contained in this marketing brochure (“Materials”) is proprietary regarding the accuracy or completeness of the Materials. Agent makes no and confidential. It is intended to be reviewed only by the person or entity representation or warranty regarding the Property, including but not limited to receiving the Materials from Cushman & Wakefield (“Agent”). 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SUBJECT PROPERTY OFFERING MEMORANDUM WINN DIXIE PRAIRIEVILLE, LOUISIANA 4 Investment Offering & Highlights 5 Investment Overview 6 Site Plan 7 Aerial 8 About the Tenant 9 Local Map 10 Regional Map 11 Prairieville, Louisiana 12 Baton Rouge, Louisiana 14 Area Demographics NET LEASE GROUP SUBJECT PROPERTY Investment Offering The Offering • A 61,834± square foot single story grocery store building leased to Real Estate / Area Strengths WINN DIXIE • Prairieville is one of Louisiana’s fastest growing suburbs • Price: $6,100,000 — 6.97% Cap Rate • Large lot size with 338 on-site parking spaces Lease / Tenant • Total population of 31,400 with an average household income of approximately $125,939 within 3 miles of the property • Winn Dixie extended the lease for 10 years NNN lease (7.5 years remaining) • Traffic counts of 44,579 vehicles per day via Airline Highway and in excess of 97,620 vehicles per day via Interstate 10 • Absolute net lease with zero landlord responsibilities • Fixed rental increases every 3 years • 20 year operating history at subject location 61 AIRLINE HWY - 44,579 VPD 61 PERKINS ROAD Investment Offering Location Annual Rent 17682 Airline Hwy, Prairieville, LA Lease Years Annual Rent Return 9/1/2018 — 8/31/2021 $425,000 6.97% Lot Size 9/1/2021 — 8/31/2024 $450,000 7.38% Approximately 7.18± acres – 312,818± square feet 9/1/2024 — 8/31/2027 $475,000 7.79% 9/1/2027 — 8/31/2028 $500,000 8.20% Improvements 9/1/2028 — 8/31/2030 (Option 1) $500,000 8.20% A 61,834± square foot single story grocery store building leased to WINN 9/1/2030 — 8/31/2033 (Option 1 incr) $525,000 8.60% DIXIE with 338 on-site parking spaces (5.5/1,000 sq. ft.). 9/1/2033 — 8/31/2038 (Option 2) $550,000 9.02% 9/1/2038 — 8/31/2043 (Option 3) $575,000 9.42% Lease 9/1/2043 — 8/31/2048 (Option 4) $600,000 9.88% Leased to WINN DIXIE MONTGOMERY LEASING, LLC., for 10 years (7.5 years remaining) from September 1, 2018 until August 31, 2028. The net annual rent 9/1/2048 — 8/31/2053 (Option 5) $625,000 10.30% commencing on September 1, 2018 of $425,000 increases by approximately 5% every 3 years throughout the primary lease term. The lease is net with the tenant responsible for all taxes, insurance, and maintenance including the Price: $6,100,000 — 6.97% Cap Rate roof, foundation, and structure. There are five, five-year options to renew with increased rents every five years. Rent Per Square Foot $6.87 net per year – $0.57 net per month WINN DIXIE, PRAIRIEVILLE, LOUISIANA / 5 Site Plan 61 PERKINS ROAD OLD JEFFERSON HWY AIRLINE HWY KIDS TIME LEARNING CENTER MULTI TENANT STRIP CENTER 61 6 / CUSHMAN & WAKEFIELD THE FLEA MARKET OF LOUISIANA SE OAK GROVE TOWNHOMES A STORAGE DEVELOPMENT FOR YOU OAK GROVE PRIMARY SCHOOL AIRLINE HWY ALMIGHTY STORAGE TROPICAL PLANT & PALM OUTLET PERKINS ROAD About the Tenant WINN DIXIE STORES, INC. (the “Tenant”) is a subsidiary of Southeastern stores and a distribution center to Ahold Delhaize USA’s Food Lion chain. Grocers, LLC (the “Parent” or ”Company”), which is the fifth-largest supermarket The company has 420 grocery stores with a majority having in-store pharmacies chain in the United States based on store count. Founded in 1925, Winn Dixie and 140 liquor stores throughout the seven Southeastern states of Alabama, operates approximately 366 grocery stores with a majority having in-store Florida, Georgia, Louisiana, Mississippi, North Carolina, and South Carolina. pharmacies and 140 liquor stores throughout the five Southeastern states of In 2012, BI-LO merged with Winn Dixie, and the parent company Bi-Lo Alabama, Florida, Georgia, Louisiana and Mississippi. Winn Dixie targets the Holdings was formed. In 2013, Bi-Lo Holdings acquired 72 Sweetbay stores, value shopper looking for a convenient, local, full-service grocer offering very plus leases for 10 prior Sweetbay locations, 72 Harveys stores and 11 Reid’s competitive prices. stores, totaling 165 stores from Delhaize Group. In 2014, conversions for the SOUTHEASTERN GROCERS, LLC formerly owned Delhaize stores to Bi-Lo Holdings ownership were completed. Reid’s banner stores were converted to BI-LOs, Sweetbay banner stores were Winn Dixie’s parent company, Southeastern Grocers, LLC, (SEC) is the converted to Winn-Dixies and Bi-Lo Holdings retained the Harveys banner. In second-largest conventional supermarket in the southeast based on store 2015, Bi-Lo Holdings was officially renamed Southeastern Grocers. For 2019, count. Southeastern Grocers achieved approximately $8.28 billion of sales. For the 28 On October 9, 2020, Southeastern Grocers filed for an IPO. They plan to weeks ending July 8, 2020, the company reported net sales of $5.30 billion and list the common stock on the New York Stock Exchange under the ticker net earnings of $206 million symbol “SEGR”. Facing stiff competition, Southeastern Grocers in recent years has worked to restructure its business, focusing primarily on Winn- LONE STAR FUNDS Dixie, and shed stores. The company in September announced deals to Southeastern Grocers is owned and controlled by Lone Star Funds (“Lone Star” sell 23 stores under its Bi-Lo and Harveys Supermarket banners to grocery or “Sponsor”). Lone Star is a leading private equity firm that invests globally in wholesaler and retailer Alex Lee and independent operator B&T Foods. real estate, equity, credit and other financial assets. Since the establishment of The transactions furthered plans to dissolve the Bi-Lo banner, disclosed its first fund in 1995, Lone Star has organized fifteen private equity funds with in June when the company announced the sale of 62 Bi-Lo and Harveys aggregate capital commitments totaling approximately $60 billion. WINN DIXIE HEADQUARTERS JACKSONVILLE, FL WINN DIXIE, PRARIEVILLE, LOUISIANA / 8 SO UTHE RN HILLS AVE Local Map DR GLASSHILL Santa Maria MP SPYHeader CA DR Golf Course BROUSSARD RD E V A O OAKGROVE PKWY A AK I LAND R DR A DR M IA R TA A MACKAY RD N M OLD MAPLEWOOD DR A S A HOPE VILLA DR T N A S UV73 J O H N B PERKINS OAK RD R O WHITE OAK DR U PLANTATION COURT DR S S RED OAK DR ARD R D MAGNOLIA EST OLD JEFFERSON HWY PLANTATION BLVD PERKINS RD 61 BROWN RD UV427 Prairieville 10 A LL IG SWAMP RD A TO R B AY O MANCHAC PLACE DR U R D UV928 UV42 N WINN DIXIE, PRAIRIEVILLE, LOUISIANA / 9 E SWAMP RD Bogalusa Regional Map Header61 55 Zachary 12 Baker Central Picayune BATON ROUGE Merrydale Denham Hammond METROPOLITAN AIRPORT Springs 12 Baton Rouge Mandeville 10 Shenandoah Prairieville 10 61 Slidell Gonzales PORT OF SOUTH LOUISIANA Lake Sorrento EXECUTIVE REGIONAL LOUISIANA 55 Pontchartrain AIRPORT REGIONAL AIRPORT 10 10 61 NEW ORLEANS Laplace LAKEFRONT AIRPORT Metairie Kenner Destrehan New Orleans Luling Terrytown Chalmette Meraux Harvey Marrero Thibodaux N 90 Raceland Morgan10 / CUSHMAN City & WAKEFIELD 90 Bayou Cane Houma BATON ROUGE SANTA MARIA GOLF COURSE MARSTON FEED & SEED ROYAL HOTEL 61 AIRLINE HWY PERKINS ROAD PERKINS ROAD NW Prarieville, Louisiana Prairieville is a census-designated place in Ascension Parish, Louisiana, covered with development. In recent decades, Prairieville has benefited United States, just south of Baton Rouge and north of Gonzales. from migration out of Baton Rouge, with new residents particularly Prairieville is an expanding bedroom suburb of Baton Rouge. Its name drawn to the area by its high-performing public schools and low crime is derived from the once plentiful pastures and prairies that were visible rate.